ADVFNI III Morning Euro Markets Bulletin
|ADVFN III||Morning Euro Markets Bulletin|
|ADVFN III||Morning Euro Markets Bulletin|
|London Market Report|
| London open: Stocks gain as German GDP beats forecasts|
- German Q2 GDP above forecasts
- Japanese stimulus could be on the agenda
- Standard Life impresses as profits jump
London's FTSE 100 advanced on Tuesday morning after German growth data beat expectations and investors hoped that policy-makers in Japan would step up to boost its economy.
German economic growth slowed down from 0.5% to 0.3% in the second quarter of 2012, but economists were expecting gross domestic product (GDP) to increase by just 0.2%.
France, on the other hand, registered its third consecutive quarter of zero growth although this was better than the 0.1% contraction that the experts were expecting.
Optimism was also being driven by the results of the latest Bank of Japan policy-setting meeting which showed that some board members wouldn't be against future policy options to combat a slowdown. It was revealed yesterday that annualised Japanese GDP increased by 1.4% in the second quarter, well below the 5.5% growth the previous quarter and under the 2.3% expansion expected.
Investors will also be looking ahead retail sales due out in the US later today. According to market analyst Michael Hewson from CMC Markets, the figures "will be scrutinised for any evidence of a change in consumer spending patterns. After seeing retail sales number slide for the last three consecutive months, it would appear that the US consumer is remaining reticent when it comes to parting with their cash dollars."
FTSE 100: Standard Life surges after first-half results
Life assurance behemoth Standard Life
jumped as it saw profits rise in the first half after a strong
performance in the UK, its biggest market. Operating profit before tax
was up 15% to £302m with the firm reporting group assets under
administration (AUA) of £204.2bn, up 3% from £198.4bn the year before.
|Europe Market Report|
| Europe open: GDP figures a pleasant surprise|
European markets have bounced back after yesterday's poor showing, encouraged by indications that the mainland's two biggest economies are in better shape than feared.
Positive numbersBoth German and French GDP figures came in better-than-expected at 0.3% and 0% respectively.
The German pace of growth slowed compared to the first quarter but the outcome was slightly better than the expected figure of 0.2%.
"The robust consumer demand so far this year is very encouraging and should also provide some support to the German economy going forward," said Thomas Harjes at Barclays Capital.
"However, the risk of another soft patch in the second half of 2012 is significant as most parts of Southern Europe remain in recession and overseas demand has also softened lately."
The French economy had been expected to fall back into negative territory.
Although it's slightly depressing to hail such anaemic numbers, it's nice for the beleaguered market to have a positive surprised for a change.
Stat delugeAfter Monday was a ghost town in terms of statistical releases, Tuesday will more than make up for the feeling that things were 'quiet...a little too quiet' yesterday.
Traders will turn their attention towards the release of the German ZEW Index of economic sentiment, which recently showed sustained and sharp weakness.
The most recent set of data is expected not to show any major further declines.
Then there will be the Euro-zone GDP and industrial production figures.
Markus Huber at ETX Capital said both were likely to paint a rather somber picture concerning the state of the European economy at the same time increasing the pressure on the ECB to do even more to support growth.
Then in the afternoon US retail sales will take centre stage with the consumer being expected to have staged a moderate rebound after last month's decline.
Company moversMerck KGaA led the DAX up after the German drugmaker beat forecasts for quarterly adjusted earnings.
It also predicted faster growth in underlying core profit this year based on higher pharmaceutical sales and a strong dollar.
Danish shipping giant AP Moeller-Maersk steamed ahead after it revealed its container line returned to profit in the second quarter on the back of improved freight rates. Sector peer Aker Solutions bobbed higher in sympathy.
DAX - Risers
Merck KGaA 85.40 +3.52%
SAP AG 52.53 +1.43%
Daimler AG 41.38 +1.35%
DAX - Fallers
ThyssenKrupp AG 16.15 -0.52%
RWE AG 32.62 -1.00%
HeidelbergCement AG 39.68 -1.22%
CAC 40 - Risers
ST Microelectronics (STM) 4.86 +1.72%
Accor (AC) 27.38 +1.39%
Renault (RNO) 37.76 +1.38%
Carrefour (CA) 15.98 +1.33%
France Telecom (FTE) 11.41 +1.29%
Michelin (ML) 57.66 +1.25%
Schneider Electric (SU) 49.53 +1.17%
Air Liquide (AI) 95.49 +1.13%
Total (FP) 40.21 +1.13%
Essilor International (EI) 68.53 +1.08%
CAC 40 - Fallers
PPR (PP) 127.05 -0.43%
EADS (EAD) 30.25 -0.40%